Hydrogen Fuel Development and Use Act of 1979

Hydrogen Fuel Development and Use Act of 1979 - Title I: Hydrogen Fuel Research, Development, and Demonstration Program - Directs the Secretary of Energy to establish a program for the research, development, and commercial scale demonstration of hydrogen production technologies and technologies concerning the use of hydrogen as a fuel and feedstock. Sets forth the types of hydrogen-related technologies to be investigated and developed.

Authorizes the Secretary to provide financial assistance in the form of loan guarantees and loan guarantee commitments, price and purchase guarantees, and such other assistance as the Secretary is authorized to provide for the construction of hydrogen facilities or the carrying out of other hydrogen projects. Sets forth criteria for establishing terms and conditions for such loan guarantees.

States that such program shall be jointly carried out by the Department of Energy and the National Aeronautics and Space Administration.

Establishes an advisory committee to assist the Secretary with such program. Terminates the existence of such committee on December 31, 1984.

Directs the Comptroller General to conduct annual audits of activities conducted under such program.

Directs the Secretary to assure the participation of small business in such program.

Authorizes the Secretary, in consultation with the Secretary of the Treasury, to guarantee and make commitments to guarantee loans made by State or local governments for the purpose of financing essential community development and planning necessitated by this Act. Sets forth requirements as to such loan guarantees. Authorizes the Secretary to make direct loans to State and local governments in the event such loan guarantee program will not result in sufficient funds to carry out such purposes.

Authorizes the Secretary to make grants to State or local governments for studying and planning for the mitigation of potential economic, environmental, and social consequences of projects authorized by this Act and for establishing related management expertise.

Directs the Secretary to make annual reports to the Congress on all activities undertaken pursuant to this Act.

Title II: Tax Incentives for Hydrogen Production and for Certain Equipment Which Uses Hydrogen - Amends the Internal Revenue Code to allow a tax deduction for the amortization of any qualified hydrogen-producing facility, as defined and based on a 60-month period. Sets forth procedures for electing and terminating the election of such amortization, and makes necessary conforming amendments.

Amends such Act to allow tax credits for expenditures for certain hydrogen-fueled equipment in residences and businesses.